Week 5 Assignment
Issues within Human Resources Management
The owners and employees of businesses are worried with issues such as cash flow, competition, and revenue development. Human resource management is another area in which many firms have difficulty. Small businesses generally lack a dedicated human resources (HR) department, making human resource management (HRM) a tough undertaking. It is indeed possible that just one person in human resources is in charge of them, or that the CEO is still in charge of them. To cope with human resource issues that may arise as their company and workers grow, small business owners must be aware of the challenges they confront.
Keeping up with the ever-changing employment laws is a daunting endeavor for business owners. Because they feel they are exempt from employment laws, many companies choose to ignore them. However, doing so might lead to audits, lawsuits, and, in the worst-case situation, the demise of their company. In addition, when a firm grows, its strategy, organizational structure, and internal processes change as well. Employees who have had difficulty adapting have expressed their concerns. Many organizations see a drop in output and employee morale while going through periods of transformation.
Many companies are doing a subpar job at best when it comes to leadership development programs, according to a new study. Another common human resources problem is a lack of investment in lower-level employees’ training and development. Due to a lack of accessible resources, some companies are unable to do so. Front-line workers may be the most resilient in the company, thus they could be unable to attend a training session because of their busy schedules. It’s a fact of life that technology is always changing. Businesses must be quick to respond to change or risk being left behind by their competitors (Cooke, 2018). Small business owners have an uphill battle in persuading their employees to adopt new technology and learn new skills.
Many companies are also trying to figure out the best way to pay their employees. Small businesses must compete not just with other similar-sized businesses, but also with giant corporations that can afford to pay significant salaries. When it comes to the expense of perks, training and other fees that may range from 1.5 to 3 times an employee’s yearly income depending on industry. Over the last four years, many small businesses have found the Affordable Care Act to be frustrating. If companies don’t pass on increased healthcare costs to their employees, they’ll have to take a financial hit as a consequence of the rising costs. Benefits packages may influence a potential employee’s choice to join a firm, so it would be important to understand them.
It takes a lot of effort and money to attract the best and brightest. It might be difficult for company owners who are simultaneously attempting to keep their workforce to make the right hiring at the right moment. Furthermore, it is difficult to tell whether a candidate is a good fit for your company until they have worked with you for a long period of time. Competition for top talent is usually fierce, resulting in a major challenge for human resources management (Troth, 2020). There are no huge expenditures for things like retirement plans, expensive insurance plans, and other high-priced items for startups and small firms compared to its larger competitors Until now, at least. Having a high rate of employee churn might limit a company’s capacity to grow. Workplace diversity may be a persistent challenge for small businesses since they have staff from a wide range of ages, ethnicities, and cultural backgrounds. If you fail to protect your employees from harassment, you might be held liable for damages.
Cooke, F. L. (2018). Concepts, contexts, and mindsets: Putting human resource management research in perspectives. Human Resource Management Journal, 28(1), 1-13.
Troth, A. C., & Guest, D. E. (2020). The case for psychology in human resource management research. Human Resource Management Journal, 30(1), 34-48.